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July 23, 2008 at 06:13 PM
Stock repurchases helped WellPoint Inc. increase earnings per share during the second quarter even though total profits fell.
Here is a summary of the latest earnings news at WellPoint and other insurers:
WellPoint Inc., Indianapolis.
2 Q 2008 Results
NET INCOME: $750 million
REVENUE: $16 billion
NET INVESTMENT RESULTS: $28 million loss
COMMON SHARES: 523 million
HEALTH PLAN MEMBERS: 35 million
2 Q 2007 Results
NET INCOME: $835 million
REVENUE: $15 billion
NET INVESTMENT RESULTS: $900,000 gain
COMMON SHARES: 618 million
HEALTH PLAN MEMBERS: 35 million
- WellPoint used repurchases to cut the number of shares of WellPoint common stock on the market 15%. That helped increase earnings per share 6.7%, to $1.44, despite a 10% drop in total net income.
- Commercial group plan enrollment increased 2%, but WellPoint saw commercial enrollment shifting more toward employer-funded plans, away from fully insured plans. The company is adding account retention programs and broker incentive programs in an effort to increase fully insured commercial enrollment.
- WellPoint is responding to adverse selection problems in its Medicare Advantage plans by adding medical management programs and by adjusting 2009 benefits and rates.
Aflac Inc., Columbus, Ga.
2 Q 2008 Results
NET INCOME: $483 million
REVENUE: $4.3 billion
REALIZED INVESTMENT CHANGE: $1 million loss
2 Q 2007 Results
NET INCOME: $415 million
REVENUE: $3.8 billion
REALIZED INVESTMENT CHANGE: $9 million gain
- Aflac, which gets much of its revenue from selling cancer insurance, health insurance and other products in Japan, says it benefited from a 16% increase in the strength of the yen relative to the dollar since the second quarter of 2007.
- Cancer insurance sales in Japan fell as a result of product shifts, but sales of medical insurance increased 8.7%.
- U.S. revenue increased 8.4%, to $1.2 billion, and premiums from new U.S. sales rose 4.9%, to $383 million.
